Social consultations of two projects – one submitted by the government and one by members of the Parliament – are underway. Both documents include a lower, 15 percent CIT rate. This is a good solution, but to truly stimulate Polish entrepreneurship, a step further is needed.
The Ministry of Finance intends to increase the growth rate and create conditions conducive to entrepreneurship, particularly for young, well-educated people. The draft involves a lower CIT rate of 15 percent for small taxpayers – namely those whose sales in the last tax year (including the value of the outstanding VAT) generated an income equivalent to 1 200 000 euro.
.Nowoczesna emphasized that the draft it prepared was intended mostly as a means of making Polish companies more competitive by leaving more funds at their disposal. In contrast to the government draft, the lower CIT rate would apply to companies whose annual net turnover generated by the sales of goods, products and services, and financial operations did not exceed the equivalent of 10 million euro. Moreover, the lower rate would also apply to entrepreneurs in the first year of activity, regardless of the turnover limit.
According to Employers of Poland, lowering CIT for small entrepreneurs is a good solution and may have a positive impact on the development of entrepreneurship in Poland. One should also keep in mind that in reality only a small number of the smallest companies pay CIT. Many are single-person economic entities subject to PIT. Moreover, the income of general and limited partnerships are also subject to PIT rather than CIT. Therefore, in order to exert considerable influence on the economy, a broader, more systemic solution should be considered – applying also to some entrepreneurs who are currently paying PIT.
The Tax Committee of Employers of Poland